NRUC

When Zero Hedge first discussed the plethora of problems at National Rural Utilities Cooperative Finance Corporation (aka NRUC) over 4 months ago, two things happened very quickly: the company's CDS blew up from 100 bps to over 250 bps overnight, and the company promptly issued a derogatory press release ridiculing everyone and everything associated with Zero Hedge (they were the first but certainly not the last). Immediately thereafter, likely under the advice of counsel, NRUC promptly retracted the press release but not before The Business Insider managed to keep a record for posterity.

In retrospect this may have been a smart move after Fitch just put the company on downgrade review for very much the same reasons I was concerned about in March.

I thought the financial cooperative had managed to sweep its troubles under the rug (at least temporarily) after NRUC announced its results last week with no major surprises... Maybe I was early... And this is despite the company's rushed attempt to complete the credit bid for ICC.

The major outlier in IG CDS over the past two days has been a name that Zero Hedge frequent readers are all too familiar with. The 5 year CDS of National Rural Utilities Cooperative Finance Corp has been on a 100 bps widening trajectory with no available news. Several traders have voiced their concern over the contents of the upcoming earnings call, which the company has postponed from its original date this week, to some time next week.